Did Amazon Earn $565 million on the Kindle Last Year?
That’s what one Morgan Stanley analyst believes, though I have my doubts. A couple days ago Business Insider posted this one graph. It’s based on data from a recent report by Scott Devitt at Morgan Stanley, and it covers his best estimate for the revenue and profit that the Kindle ecosystem (Kindle, Kindle Fire, movies, music, ebooks, adverts) generates for Amazon.
Is it accurate? I have no clue. But it does make for an interesting contrast to the B&N news of the past few weeks. It’s also a useful rebuttal to anyone who says that Amazon is selling ebooks below cost so they can drive the competition out of the market.
To be honest, my view of this chart is closer to the comment left on the Business Insider website by one reader:
"He believes…"? Really? What has this become? a religious exercise?
My initial response was a derogatory reference to government accounting, but I have learned to temper my opinion (sometimes). But even though I don’t think this chart is accurate, it is probably still somewhere in the close geographic region as the real figures. And unless someone leaks those to me (please oh please oh please) I won’t know how inaccurate the above chart really is.